Shares of coal producers mostly fell Monday, as investors pulled back following several disappointing earnings reports.
Pittsburgh-based Consol Energy Inc., the second largest U.S. coal producer by revenue, said Thursday a mine shutdown, production delays and one-time charges pushed its first-quarter profit down 34 percent. The results missed analysts' expectations.
Analyst Paul Forward of Stifel Nicolaus said Consol's weak first was largely expected due to production delays, and he remains optimistic that the company will benefit later in the year as it seeks contracts for a large amount of coal still left unpriced.
He noted this benefit will carry the company even further in 2009, as coal prices are expected to maintain their bullish climb.
Consol shares fell $1.37 to $80.40 in early afternoon trading.
After the bell Wednesday, International Coal Group Inc. said its first-quarter loss widened, in part due to labor shortages which slowed new production at a West Virginia mine.
Also late Wednesday, Consol, Massey Energy Co. and privately held coal company Tyler Morgan LLC agreed to temporarily limit activity at three mountaintop mines opposed by environmentalists.
International Coal Group rose 4 cents to $8.24. Massey lost $1.79, or 3.4 percent, to $50.85.
Elsewhere in the sector, Peabody Energy Corp., the nation's largest coal producer, sank $2.80, or 4.3 percent, to $63.
Arch Coal Inc. fell 99 cents to $57.17, and Alpha Natural Resources Inc. slipped $1.60, or 3.2 percent, to $49.15.
Foundation Coal Holdings Inc. lost 96 cents to $60.94.
Terms & Conditions
RSS Headlines
Fool UK